The insurance premium is one of the key considerations while buying an insurance policy. At first, to buy insurance or not is a big dilemma, i answered this question in my post to buy insurance or not. Please note that insurance premium is dynamic and variable from case to case basis. Considering everything being equal we prefer a policy with lowest insurance premium. There are multiple factors that impact your insurance premium. For example, Monthly income benefit in term insurance plan can increase your premium. One way to save insurance premium is to buy an online policy. It is a known fact ... Read More
To Buy Insurance or Not – The Probability of an Event Can Help To Decide
Recently I was booking an air ticket for myself. My wife insisted me to buy insurance cover for travel. I politely refused and here comes the googly. She told me "You only keep suggesting everyone buy insurance". Ohh God!! I was trapped :). I replied that if start buying each and every insurance cover under the sun then my entire income will go towards payment of insurance premium. I covered this point briefly in the post, Critical Illness Plan - Do I need it? Normally the financial planners suggest that insurance should be need based. The biggest problem is how to arrive at logical and ... Read More
Is Life Insurance Cover 10 times Your Income Sufficient for Your Family
How much Life Insurance Cover should i avail? This is one of the most common questions creeping on personal finance forums/newspapers. Certified Financial Planners suggest that a cover of 10 times your annual income is sufficient. I find same suggestion for all such queries. Now, this advice is deep rooted in psychic of an individual who does proper research before buying a Life Insurance Cover. Recently i wrote a post, Life Insurance Plan - 5 Possible reasons why you should not buy. In that post, i highlighted 5 general cases under which an individual doesn't need Life Insurance Cover. There ... Read More
Life Insurance Plan – 5 Possible Reasons Why You Should Not BUY
Till date, all my posts on life insurance plan were focused on why we should avail life insurance plan. At the same time, it is a fact that same shoe doesn't fit all. In certain cases, a life insurance plan might not be required. To clarify that in this post, life insurance plan means term insurance plan. Normally "Insurance" in India means "Life Insurance" only :) but traditional plans like money back policy, endowment plans etc. From a personal finance perspective and as a thumb rule, if you buy any financial product then you should ask 5W's i.e. What, Why, When, Where and Who/m. The ... Read More
Joint Life Insurance – Check Out the Details Before You Buy
Recently during a casual discussion, one of my readers told that he has opted for joint life insurance cover. Out of curiosity, i asked him the reason for same. He told me that it is cost effective. He bought joint life insurance with his wife. I was actually stumped. This guy availed home loan and was looking for a term insurance to cover the home loan. The insurance agent pitched for joint life insurance and he happily agreed. I was wondering, how can someone buy an insurance just because it is cost effective. He has not checked all the features of the policy. It means insurance company has ... Read More
Click 2 Retire – An Online Pension Plan
Recently one of my friends asked my father "Which pension plan you opted for retirement?". My dad laughed and told him that "Govt provided Pension" was his only pension plan. I wish that today's generation could have enjoyed the same privilege. With an uncertain economy and job environment, there is an enormous pressure on the current generation to kick start financial planning ASAP. As an individual, my Financial Planning is much more sophisticated than the previous generation. During Good Old Days, My father's only worry was kid's education and marriage. These days besides kids education and ... Read More